Special 8(a) Subcontract Conditions
This clause clarifies 8(a) subcontractor obligations, agency authority, and payment procedures to ensure compliance and transparency in SBA 8(a) contracts.
Overview
FAR 52.219-12, Special 8(a) Subcontract Conditions, outlines the mandatory contractual requirements for 8(a) subcontractors performing under an 8(a) contract awarded by the Small Business Administration (SBA) to a federal agency. This clause ensures that the 8(a) subcontractor acknowledges its obligations to fulfill the contract on behalf of the SBA, recognizes the delegation of contract administration to the federal agency (except for novation agreements), and requires prompt notification to the Contracting Officer of any changes in ownership. It also specifies that payments, including progress payments, will be made directly to the subcontractor by the contracting agency. The clause is designed to clarify roles, responsibilities, and communication channels in 8(a) contract performance, supporting compliance and transparency for all parties involved.
Key Rules
- Acknowledgement of Contract Requirements
- The 8(a) subcontractor must agree to perform all contract requirements on behalf of the SBA and confirm familiarity with the contract terms.
- Delegation of Administration
- The SBA delegates contract administration (except novation) to the contracting agency, granting it full authority to act on the Government's behalf.
- Ownership Change Notification
- The subcontractor must immediately notify the Contracting Officer in writing of any agreement to transfer ownership or stock.
- Direct Payment
- The contracting agency is responsible for making all payments directly to the subcontractor.
Responsibilities
- Contracting Officers: Administer the contract, act on behalf of the Government, and receive ownership change notifications.
- Contractors (8(a) subcontractors): Fulfill contract requirements, notify of ownership changes, and ensure compliance with all terms.
- Agencies: Oversee contract administration and ensure timely payments to the subcontractor.
Practical Implications
- This clause ensures clear delegation of authority and payment processes in 8(a) contracts, reducing confusion and risk of noncompliance.
- Contractors must be vigilant about ownership changes and maintain open communication with the Contracting Officer.
- Failure to comply with notification or performance requirements can jeopardize contract standing and SBA program participation.